However a loan from a single lender may not be enough to cover the full cost.In this scenario, most students take out multiple loans from different lending institutions.If you consolidate student loans, you are taking out a new loan in the amount of all of your existing loans combined.Your original interest rates carry over so you’ll end up paying the same amount over the course of the loan.One loan is ,000 @ 6.5% interest, the second loan is ,000 @ 3.5% interest.Because the loan with a k balance makes up 25% of the borrowers’ balance, they would multiple 25% x 6.5% = 1.625%.
Often used interchangeably, consolidating and refinancing student loans refer to different things.
This site does not negotiate, adjust or settle debts.
All federal student borrowers are able and encouraged to apply for any federal repayment or forgiveness programs through the US Department of Education without paying fees to any entity.
This method takes the average weight(balance) of your loans as compared with the interest rate to give you a new fair interest rate.
Example: Borrower has a balance of 0,000 on their federal student loans that is split into two different loans.